Vacation Rentals 101: Turn Your Second Home Into A Holiday Rental

January 27, 2012

Why leave your second home vacant when you can easily list it as a holiday rental? Let your rental income pay your second home mortgage.

When you first get your hands on a second home, it's all fun and games: those first months are the honeymoon phase of home ownership. Yet, it's only a matter of time until reality sets in and payables sky-rocket. From replacing dry wall to repairing the roof, owning a second home is expensive and managing these expenses is not always easy.

Common Expenses:

Mortgage payments

Insurance

Property tax

Maintenance and repairs

Renovation and decoration

The initial dream of endless vacation can start to look like an endless burden, especially if you only stay in your second home for a few weeks a year. Is two weeks of vacation worth twelve months of dishing out dinero? However, take this moment to ask yourself, are you seeing your home as half empty or half full? Hint: this time erring on the side of emptiness is actually a bold act of optimism. As long as your second home is vacant, it provides an opportunity for a second income, so it makes no sense to keep your vacation property vacant for most of the year. With so many travelers interested in renting a holiday home, now is the time to offer your property as a holiday rental and receive a steady stream of rental income that will help you cover common expenses.

The good news: the cost of converting one's second home into a holiday rental is very minimal. There are two main costs associated with holiday rentals:

Housekeeping or caretaker fees

Advertising and marketing costs

Housekeeping and/or caretaker fees vary, but remember this cost can be built into your rental rate. Advertising and marketing costs range from dear to diddly-squat - depending on which method you choose (i.e., word of mouth, classified sites, holiday rental site, rental agent) - yet, these investments will prove to be minimal as compared to the enormous income potential presented by your rental property.

Thanks to the Internet, it's possible for just about anyone to list a holiday rental and connect directly with travelers. And, not only is it possible, but essentially painless. Sorting out details such as housekeeping between guests is fairly straightforward, and if you list your property with a reputable holiday rental website, managing rental inquiries and bookings is a breeze. CanadaStays.com, for example, provides listers with a messaging system to communicate with travelers, an automatically updating availability calendar, a reservation management system, and a free merchant account for accepting payments.

Summary: Why leave your second home vacant when you can easily list it as a holiday rental? Let your rental income pay your second home mortgage.